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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Insurance

Date & Time
  • event Date

    Tuesday, November 15, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$297.00
CLE
ALL

This CLE course will discuss the challenges and complications for insurers from rescinding an insurance policy and how a policyholder can effectively respond if the insurer attempts to rescind its policy after a covered claim is made. The panel will review addressing rescission for statutorily required coverage, bad faith indicators, and how different courts treat claims made by innocent third parties. The program will review what misrepresentations may justify insurance policy rescission, related acts of revival and reinstatement, and bad faith "post-claim" underwriting.

Faculty

Matthew R. Major
Of Counsel
Wilson Elser Moskowitz Edelman & Dicker LLP

Mr. Major focuses his practice on civil litigation at the state and federal levels in trial and appellate courts with a concentration on general litigation, insurance litigation, employment litigation, professional and management liability defense, and securities litigation. He also has represented insurance carriers in complex, high-profile coverage disputes; defended large corporations against claims involving dissolution, contract, fraud, fiduciary duty, trade secret, products liability, employment, ERISA, and personal injury law components; and represented individuals involved in securities and contract-related disputes. He has achieved certification in the firm’s rigorous National Mock Trial Program, through which our most successful trial lawyers impart their knowledge to those destined to join their ranks.

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Mark R. Vespole
Partner
Wilson Elser, LLP

Mr. Vespole is a trial lawyer who also counsels and represents financial institutions, insurers and corporations and their employees in high-profile cases. He draws on Wilson Elser’s deep resources and national footprint to handle large, multijurisdictional and complex cases expeditiously and cost effectively. Mr. Vespole combines sophisticated legal strategies with the firm’s professional support to handle large-scale document processing and its technology resources to streamline communications and facilitate case management.

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Joseph Monteleone
Partner
Weber Gallagher Simpson Stapleton Fires & Newby, LLP

Mr. Monteleone serves as coverage and monitoring counsel for errors and omissions (E&O), directors and officers (D&O), employment practices liability (EPL), and other claims-made insurance products.

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Description

While insurers' counsel view the rescission of an insurance policy as an underutilized tool in handling insurance claims, policyholders' contend rescission is often nothing more than opportunistic, post-claims underwriting that leaves the policyholder and sometimes injured third parties defenseless. The representations of the insurer and its agents at the time of purchasing the coverage may also play a role in whether rescission is proper as well as the policy exclusions.

Rescission is an equitable remedy, but its use and scope are matters of state statutory law. The remedy targets material misstatements in the application or claims presentation process, but applications and other paperwork are often confusing. Attempting to rescind a policy after losses often leads to bad faith and litigation claims with costs that could exceed the claim amount. A valid choice of law provision does not necessarily control applicable "bad faith" law.

Because rescission often requires some intentionality, summary judgment is seldom practical for the insurer. Insurers must be careful not to waive the right to rescission and exercise it carefully. Policyholders, however, have significant defenses, including bringing claims or counterclaims for bad faith.

Listen as the panel discusses the increasing use of rescission in all types of policies, including general liability coverage, auto coverage (fleet and business coverage), and individual policies.

Outline

  1. Overview of rescission and state law requirements
  2. Procedures and formalities of rescission or cancellation
  3. Grounds for rescission
  4. Bad faith rescission
  5. Strategies for policyholders
  6. Strategies for insurers

Benefits

The panel will review these and other issues:

  • What is the required procedure for seeking rescission?
  • What types of proof can or must an insurer rely on to seek rescission?
  • Is rescission effective for innocent insureds and third parties?
  • What are the badges of "bad faith" in rescission? Can the insurer waive the right to rescind?
  • What are the insurer's duties upon rescission?